Main Photo: The new Marylebone Hotel – imagined
Date: June 2020
Location: A former car-park on Welbeck Street/Marylebone Lane, Bond Street, London, England, UK
No. of Keys: 199
Owner: Shiva Hotels, owners of several branded hotels in London and the UK, with some new developments – Morley House, Holborn Viaduct; the former Soho Works site on Great Marlborough Street/Poland Street; The Guardsman, Buckingham Gate; the Middle Eight in Covent Garden (these last two due to open Autumn 2020)
Funders: Shiva have secured £230m financing for the new Marylebone scheme, from Cale Street Investments and Crosstree Real Estate Partners, to fund the construction, through to completion, of its 199-key luxury lifestyle hotel in Marylebone, London. Agreed during the COVID-19 pandemic, the transaction represents one of the largest recent development facilities for a Central London hotel.
Cale Street is providing €175.9m (£160m) and Crosstree €76.9m (£70m) of the initial four-year facility, which has an option to extend and refinances an €87.9m (£80m) loan that was in place with ICG Longbow. It represents the Group’s first transaction with Cale Street and Crosstree, both of which have extensive experience financing complex hotel projects of this type.
John F Hunt, the construction specialist, has been appointed to undertake demolition site groundworks as well as the initial substructure and frame construction works, with the main contractor to be appointed early next year. The first guests are due to be welcomed in early 2023.
Rishi Sachdev, Managing Director of Shiva Hotels, commented: “This is a major milestone for our Marylebone Lane development, and brings the delivery of what we believe will be one of London’s most iconic hotels one step closer. Cale Street and Crosstree are both hugely experienced and highly selective real estate financiers and bring a deep understanding of the UK hospitality sector.
Securing this package, particularly in the current economic climate, is a further endorsement of our vision to create an unrivalled luxury lifestyle hotel brand and we are extremely excited to be partnering with both parties. This is a challenging time for everyone involved in the hospitality sector and our near-term focus continues to be on working closely with all our stakeholders to navigate through this period of uncertainty.
Longer-term, however, we are steadfast in our conviction that the global appeal of London will continue and that this will translate into strong demand for our carefully curated hotels in highly desirable locations.”
Peter Robinson, a Partner at Crosstree, said: “Given the current dislocation in real estate financing markets for projects of this type, Crosstree together with Cale Street are pleased to be working with Shiva in taking forward this prime hotel development. While no doubt we are currently in a challenging period for the hospitality industry, we share a longer-term vision of the resilience of London and high-quality real estate and locations such as this.”
BBS Capital acted as debt advisor for Shiva Hotels.
THPT Comment: Good to see long-term funding available for Shiva’s ambitious new London hotel, and the move away from the branded chain hotels, to their more distinctive individual style names and brand.
First Seen: Property EU
The Hotel Property Team (THPT) are a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.